NSW RURAL FIRE SERVICE Notes to the financial statements for the period ended 30 June 2013 Assets and liabilities The Service’s Net Assets were $25.6m higher than budget for the reporting period. Major reasons for improvements in the asset position were:
An improved cash and receivables position resulting from under-expenditure and improved revenue referred to above, along with a higher level of creditors at the end of the reporting period meaning that higher levels of cash were held at period end; Additional expenditure on non-current assets compared to the budget, although this expenditure was in line with the capital program, and the variance to budget largely results from the budget having been based on forecast opening balances which differed to those actually experienced.
This was partly offset by a higher than budgeted liabilities position consisting of:
A higher than expected level of creditors, which is offset by a higher than budget level of cash; and Higher than expected provisions for employee entitlements which result from the budget having been based on a forecast end of period position for 2012 rather than the actual result which saw significant increases in employee entitlement due to actuarial losses on superannuation.
Cash flows The Service’s cash position was $36.5m higher than budget due to:
A change in the opening cash position compared to budget of $19.4m; and Under-expenditure and improved revenue referred to above. 2013
2012
$’000
$’000
17. Reconciliation of Cash Flows from Operating Activities to Net Result Net cash used on operating activities
356
Depreciation Decrease / (increase) in provisions Decrease / (increase) in other liabilities
Superannuation actuarial loss / (gain) Net gain / (loss) on sale of plant and equipment Net result
(4,773)
(4,332)
7,309
(17,837)
(559)
Increase / (decrease) in prepayments and other assets Decrease / (increase) in creditors
23,679
-
12,118
(1,983)
(12,761)
(3,558)
(5,258)
14,663
(53)
214
(3,621)
10,846
18. Financial Instruments The Service’s principal financial instruments are outlined below. These financial instruments arise directly from the Service’s operations or are required to finance the Service’s operations. The Service does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Service’s main risks arising from financial instruments are outlined below, together with the Service’s objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included throughout these financial statements. The Commissioner has overall responsibility for the establishment and oversight of risk management and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced by the Service, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the Audit and Risk Committee.
NSW RURAL FIRE SERVICE – ANNUAL REPORT 2012/13
79